The open interest on gold and copper almost doubled from their lows earlier this year.
Gero is keen to see what the open interest levels will be in the Comex gold futures once the session ends.
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Digging into the open interest configuration, peak call accumulations for the August and September series of options reside at the out-of-the-money 60 strike, representing more than 17, 000 contracts.
As you can see in the chart below, the put open interest at the 123 and 124 strikes was minimal compared to the put open interest at the 125 through 128 strikes.
When taking into consideration the open interest data and the exiting of net longs by money managers, it suggests that money is on the sidelines and that there is potential for a new cycle of buying.
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As you can see, the current accumulations of put open interest are fairly conservative, i.e. close to the money, while the call open interest is considerably more speculative.
Option traders exchanged more than 25, 300 option contracts on PCLN Monday, which is nearly 23% of the existing open interest on the stock of 110, 542 lots.
Looking further out, the majority of open interest lies in the January '08 series where 45% of open interest is held.
Grady said earlier in the session, prices popped higher when the daily open interest figures rose despite the lower price settlement on Wednesday.
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Grady said earlier in the session price popped higher when the daily open interest figures rose despite the lower price settlement on Wednesday.
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George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, is among those traders who monitor the open-interest data on a daily basis for clues on the type of buying or selling that is occurring.
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Furthermore, open interest at the March 11 strike fell to 11, 268 contracts, while open interest at the March 13 strike rose to 17, 878 contracts.
Peak call open interest for May lies at the in-the-money 32.50 strike, and there are virtually no out-of-the-money calls in open interest in the back-month June series.
Gold futures saw little rise in open interest during the rally to new highs and open interest has been stagnant lately, which can be a sign that new participants are not coming to the market.
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Options traders are lining up to take advantage of the event, with peak May call open interest of 34, 618 contracts residing at the 350 strike, and peak May put open interest of 24, 741 contracts resting at the deep out of the money 320 strike.
He said the current net-long position is roughly 43% of the total open interest in futures.
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Another positive is the rising open interest for Comex gold, Morrison added.
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Most of the big changes in open interest the past 2-3 months have been declining so a rise of this magnitude indicates money returning to gold.
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Resistance for the SPX is at the round-number 900 area, which is home to the heaviest out-of-the-money call open interest in the May series.
Peak call open interest totals 611 contracts at the August 55 strike, while peak put open interest numbers 243 contracts at the June 50 strike.
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On the put side, peak open interest lies at the out-of-the-money February 75 strike, totaling 2, 036 contracts.
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On the put side, peak open interest lies at the out-of-the-money 185 strike, totaling roughly 3, 600 contracts.
On the put side, peak open interest of 90, 106 contracts are open at the May 25 strike, with another 59, 310 open at the May 24 put.
On the call side, peak open interest lies at the out-of-the-money January 2012 50 strike, totaling 16, 959 contracts, while 11, 126 calls are open at the October 50 strike.
Peak November call open interest totals 5, 054 contracts at the 130 strike, while peak front-month put open interest numbers 6, 003 contracts at the 80 strike.
In his speech in Frankfurt, Bernanke left the door open to new interest -rate cuts, saying the world's central banks stand ready to take more steps if necessary.
In the front-month November series (contracts expiring on the 19th), peak call open interest resides at the 15 strike, totaling 13, 016 contracts.
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Following at a close second is the March 13 strike, where 15, 830 contracts crossed the tape on open interest of just 3, 065 contracts.
Person said given the drop in open interest in Comex gold futures, there might be some selling of positions to put to work elsewhere.
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